FANNIE MAE - FNMA STOCK NEWS

The Fannie Mae Economic and Strategic Research (ESR) Group anticipates a "new normal" for the housing market and economy in 2022, with a projected home price appreciation of 7.6%, significantly lower than 2021's 17.3%. Economic growth is expected to slow, with real GDP growth at 5.5% for 2021 and 3.1% for 2022. Inflation is projected to average 7.0% in Q1 2022, tapering to 4.0% by year-end, prompting the Fed to likely raise interest rates three times in 2022. Key risks include inflation and supply chain disruptions, which may affect housing affordability.

Fannie Mae has received new credit ratings for its previously unrated Connecticut Avenue Securities (CAS) notes, increasing their market eligibility and liquidity potential. The ratings reflect improved credit protection and performance of the underlying assets, attributed to enhanced loan performance and home price appreciation, resulting in lower expected losses. With 44 CAS deals and over $50 billion issued, Fannie Mae has effectively transferred a substantial amount of credit risk. This move aims to foster growth in the secondary market.

Fannie Mae (OTCQB: FNMA) financed nearly $70 billion to support the multifamily market in 2021, marking a significant achievement as funding for multifamily affordable housing rose by 23% to a record high. The organization remained a crucial liquidity source for borrowers and renters amid pandemic disruptions. Multifamily affordable housing volumes hit $9.6 billion, up from $7.8 billion in 2020, while green financing reached $13.5 billion. Fannie Mae aims to enhance affordable housing availability and sustainable rentals moving forward.

Fannie Mae announced the launch of HomeView™, a free online homeownership education course aimed at empowering consumers in the mortgage and homebuying process. Accessible on any device, this course addresses common knowledge gaps among aspiring homebuyers. Recent research shows many are unaware of necessary credit scores and down payment options. HomeView aligns with National Industry Standards and includes interactive modules covering various aspects of homeownership. The initiative seeks to promote housing equity, particularly among low- and moderate-income and minority borrowers.

Fannie Mae (OTCQB: FNMA) has priced its Connecticut Avenue Securities® (CAS) Series 2022-R01, a $1.5 billion note offering. This is the first CAS REMIC® transaction of the year, aimed at sharing credit risk on Fannie Mae's single-family conventional guaranty book. The reference pool includes ~180,000 mortgage loans, totaling nearly $54 billion. Fannie Mae retains risk in several tranches, while BofA Securities leads the structuring. To date, Fannie Mae has issued over $51 billion in CAS notes, transferring credit risk on nearly $1.7 trillion in loans.

The Fannie Mae Home Purchase Sentiment Index (HPSI) dipped 0.5 points to 74.2 in December, indicating a cautious outlook in the housing market. Only 26% of respondents felt it was a good time to buy, down from 29% the previous month, while 76% thought it was a good time to sell. Year-over-year, the index is up by 0.2 points. Doug Duncan, Chief Economist, noted rising affordability concerns, driven by increasing home prices and anticipated mortgage rate hikes. Additionally, consumer expectations regarding home prices shifted slightly, with a net increase in those believing prices will rise.

Fannie Mae (OTCQB: FNMA) has released its November 2021 Monthly Summary, detailing significant metrics related to its gross mortgage portfolio, mortgage-backed securities, and interest rate risks. The report also covers serious delinquency rates and loan modifications, essential for understanding the company's financial health. This information aids investors in assessing Fannie Mae's performance in the housing finance sector. For a comprehensive look, visit fanniemae.com.

The Economic and Strategic Research Group from Fannie Mae revised its 2021 economic growth forecast upward to 5.5%, citing strong consumer spending. However, the 2022 GDP growth projection was adjusted downwards to 3.2% due to anticipated inflation impacts. The group expects inflation to peak at approximately 7.0% in Q1 2022 and gradually decelerate to 3.8% by year-end. Home sales are projected to grow by 7.1% in 2021 but decline by 1.4% in 2022 due to affordability issues. The Fed is expected to initiate interest rate hikes in 2022 to combat rising inflation.